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Hong Kong, Oct 22: Hong Kong spot gold ended lower on Thursday after a stronger dollar against the yen sparked selling by professionals, traders said.
Gold bullion ended at $293.90/294.40 per ounce on Thursday compared to New York's previous close at $295.00/50 on Wednesday.
"Gold turned weaker after professional selling on a stronger dollar/yen. Sentiment is not good," a trader said.
With a lack of fundamental news, gold was dominated by movement in the dollar/yen rate and probably would test down to the $292.50 level shortly, the trader said.
The dollar rose against the yen, climbing above 118 yen amid talk of large-lot dollar buying by a Japanese securities firm, traders said.
Comments by treasury secretary Robert Rubin overnight that the United States supported a strong dollar also gave the currency a boost.
In Tokyo, gold futures were mixed. Traders said gold long positions were liquidated on expectations of a weaker dollar.
Dishoarding of gold in Asia has recently stopped as a result ofthe longer-term trend of a lower dollar, a Singapore trader said.
"We are seeing very little scrap from the market," he said, noting the rise in the Indonesian rupiah against the dollar, which made gold less expensive in the local currency.
An executive of the World Gold Council, speaking in Shanghai on Wednesday, said overall gold demand rose 50 per cent during the second quarter versus the first quarter of 1998.
Spot silver ended at $4.86/89 an ounce after closing in New York at $4.88/91 on Wednesday.
Local tael gold ended HK$24 down at HK$2,710.
The carry over charge at the Chinese Gold and Silver Exchange Society was unchanged from its previous fix at -3.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
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